Global Mindset: MBA Challenge


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We know much about globalizing corporations via technology and the like; we know much less about globalizing people. What globalization means for executives as individuals---how their roles change with globalization; what individual personality traits, skills, and experiences will matter most; and how easy, or difficult, it is for them to adjust. Indeed, corporations are raising concerns about their management teams. Based on an extensive research project including data from over 14,000 managers from companies around the world, this session will describe essential global leadership attributes called Global Mindset. They are attributes that move beyond cross-cultural intelligence to the ability to operate effectively in different institutional, legal, and social contexts. You will leave this session with a clear understanding of what Global Mindset is, how to measure it, and, most importantly, how to nurture it in your organization in ways that leverage performance and effectiveness.

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Global Mindset: MBA Challenge

  1. 1. The MBA Challenge: Are They Ready? Mary B. Teagarden Professor of Global Strategy Connections 2012 Dublin, Ohio May 1, 2012
  2. 2. The future ain’t what it used to be. Yogi Berra
  3. 3. The Globally IntegratedEnterprise“…the emerging globally integrated enterprise is a company that fashions its strategy, its management, and its operations in pursuit of a new goal: the integration of production and value delivery worldwide. State borders define less and less the boundaries of corporate thinking or practice.” Samuel J. Palmisano, Chair of the Board, President, and CEO–IBM 3
  4. 4. Global Supply Chains 4
  5. 5. Global Supply Chains• Supply chains of 8000 miles or 3000 partners based on low cost are not enough—or well manageable.• Global demand chains are emerging— customer focused and customer centric.• Information is approaching zero unit cost and infinite availability.• Ability to connect with the customer will be key.
  6. 6. Global Organizations
  7. 7. Global Organizations• Global footprint will no longer be sufficient.• Global organizations need new business models, new supply channels, new ways to cut costs and bring products and services to market: INNOVATION & IMOVATION!• Business models are becoming the dynamic battle ground for competing.• Brand and its reach will be the prime competitive thrust.
  8. 8. Alliances & Partnerships © ValdisKrebs
  9. 9. Alliances and Partnerships• Collaborating with partners will be key for brand reach, smooth flowing supply chains, geographic reach, and information access.• Models of capitalism and markets are not all created equal. • Business-government partnerships are typical in many growth markets. • Governments might be the business partner!
  10. 10. Global Customers
  11. 11. Global Customers• The bottom of the pyramid (BOP) is the emerging opportunity. • Perfect simple designs • Low margins and high volumes are key • Both depend on customer intimacy.• Social responsibility will grow to meet customer expectations and align with communities where employees live and work. • Besides, millenials expect it!
  12. 12. Global Employees
  13. 13. Global Employees• Jobs are increasingly horizontal, cross- functional, and cross corporate. • Collaborating with others throughout the value chain will be critical.• Look outside your job at those with whom you interface: • Learn what they do • Know their problems and pressures • Know what makes them suceed—and help the do so. • Social media is critical to do this
  14. 14. The increasing complexity of the globalenvironment, the continued flattening oforganizations and the blurring of boundariesdemand leaders who can collaborate withpeople from all parts of the world and in allparts of the organization.
  15. 15. Challenges, Challenges,Challenges….• Leadership shortages• Organizational challenges• Global talent challenges• Global engagement crisis• Generations and the meaning of work• Strategy-talent misalignment
  16. 16. Leadership Shortage“For the past 25 years, we have optimized our organizations for efficiency and quality. Over the next quarter century, we must optimize our entire society for innovation.” -National Innovation Initiative, Council on Competitiveness: December 2004– Leadership skills and experience in demand • Transcultural knowledge • Leadership skills modified for local culture; market • Creativity and innovation skills and experience
  17. 17. Organizational Challenges• Intensifying competition for talent• Shifting centers of economic activity• Increased technological connectivity• Dealing with regional diversity• Speed of addressing problems and opportunities - McKinsey Report, 2008
  18. 18. Global Talent Challenges
  19. 19. Global Engagement Crisis• 2010 Hewitt Associate study: • Drop in Employee Engagement • 46% organizations experienced a decline.• 2009 Conference Board Report: • Growing Job Dissatisfaction • Down to 45% satisfied from 61% satisfied.• 2009/2010 Towers Mercer study: • Top Performers Feel Less Confident and Less Committed • Engagement level dropped 23%.
  20. 20. What is Engagement?• Employees’ willingness and ability to contribute to company success.’ (Towers Perrin)• Staff commitment and a sense of belonging to the organization.’ (Hewitt)• Employees’ commitment to the organization and motivation to contribute to the organization’s success. (Mercer)• Employees’ exertion of “discretionary effort”…going beyond meeting the minimum standards of the job.’ (Hay)• Creating a sense that individuals are a part of a greater entity.’ (Best Practices, LLC)• Engagement represents the energy, effort, and initiative employees bring to their jobs. (Harvard Business Review)
  21. 21. Generations—Meaning of Work• Net Generation (born 1980-1995) » Ensuring their “whole life” option stays intact, balance being their absolute foundation for meaning• Gen X’ers (born 1966-1978) » Balancing responsibility and personal freedom, differentiating unique value vis-à-vis older and younger generations• Boomers (born 1942-1965) » Finding ways to connect their work to the social good and to the new second stage of middle age they are inventing• Veterans (born 1920-1942) » Staying deeply engaged, extracting their unique value by mentoring roles linked to the challenges of knowledge work.
  22. 22. Global Meaning of WorkCountry Generation X Net GenerationUnited States Recognition & social status Endless, thrilling, intellectual challengesChina Dream of high paid jobs, Personal independence & frustrated by poor financial success; connect education, worry about work with the world stabilityMexico Attach meaning and identity Get ahead—social mobility to education and company position; pragmatic concerns for salary and security—but satisfy household needs firstGermany Heavily influenced by old Persistent unemployment social contract and has given some a cynical paternalism; have idealism attitude; tension between and hope to gain personal desire for personal expression development and fear of not finding good work experience
  23. 23. The NeedThe best employers the world over will belooking for the most competent, mostcreative, and the most innovative people onthe face of the earth and be willing to paythem top dollar for their services. Report of the New Commission on the Skills of the American Workforce, 2006
  24. 24. Talent Knowledge + Skill sets + Mindsets + Commitment = TALENT
  25. 25. Strategies Focus• First Generation • Product/Markets • Efficiency• Second Generation • Core Competencies • Capabilities• Third Generation • Talent & Ideas • Knowledge
  26. 26. We’re trying to implementthird-generation strategiesthrough second-generation organizations run by first- generation managers. Christopher Bartlett
  27. 27. Global Leaders of the Future The Jack Welch of the future cannot be like me. I spent my entire career in the United States. The next president of GE will have to be someone who spent time in Bombay, in Hong Kong, in Buenos Aires. We have to send out best and brightest overseas and make sure they have training that will allow them to be the leaders who will make GE flourish in the future. Global Explorers, 1999
  28. 28. The question is no longerwhether everyone will haveto globalize; the question ishow much, and in what ways. McCall & Hollenbeck, Developing Global Executives,
  29. 29. Most multinational companies now do agood job of globalizing supply chains forall their essential raw materials—except human resources. Players in global markets can no longer afford this blind spot.
  30. 30. Global Leaders Need To:• Manage dynamic complexity• Respond with agility to crisis and opportunity• Embrace the democratization of knowledge• Engage in wisdom of crowds and social networks to innovate and grow the business in new markets• Build global cross-cultural competence as a critical business skill.Source: Rogers& Blonski (2010) The Global Leadership Mindset. Chief Learning Officer.
  31. 31. The future is now.
  32. 32. Is the World Really Flat?
  33. 33. Vérité en-deçà des Pyrénées, erreur eu-delà. (There are truths on this side of the Pyrenees which are falsehoods on the other.) Blaise Pascal
  34. 34. Is the World Really Flat?
  35. 35. Is the World Really Flat?
  36. 36. Is the World Really Flat?Not according to:• The GLOBE Studies• The World Bank• The World Values Survey• The World Economic Forum• The Global Mindset Institute
  37. 37. Perspective Matters
  38. 38. The world is not flat…So What?
  39. 39. Your primary challenge is to think globally and act locally. Global Mindset is the bridge!
  40. 40. Global Mindset—The Journey• Define Global Mindset• Measure Global Mindset• Develop Global Leaders with Global Mindsets
  41. 41. The Corporate Challenge How do we align and leverage the efforts of our employees around the world who join our company with vastly different life experiences, from diverse cultures and often dramatically different contexts?© Mary Teagarden, 2008
  42. 42. Global Mindset Studies: • Behavior & • Knowledge Skills & Know- How Mendenhall Gupta & & Colleagues Colleagues , Bartlett & Rhinesmith Ghoshal • Thought & • Role, Perception Structure & Reach
  43. 43. Global Mindset Studies
  44. 44. Challenge from Global CompaniesWhat are globalmindsets andhow do we buildthem?
  45. 45. What Is Global Mindset®? A set of individual characteristics that help global leaders better influence individuals, groups, organizations and systems unlike his or her own.© Mary Teagarden, 2008
  46. 46. The Scientific Challenge• Global mindset is in the eye of the beholder —there are individual, group and organizational level definitions.• Assumed/asserted to be important—but not tested.• No comprehensive, validated instrument for assessing global mindset as a multi- dimensional construct.© Mary Teagarden, 2008
  47. 47. The New Science of Global Mindset
  48. 48. management, education org studies training/HR language/ x-cult international relations #1 sampling plan: Review literatures, create/refine interviews, focus formulate research frame research questionsgroups w/int’l scholars n=8 global scholars sr. acad. validate via n-30 expert judges Obj. #1 investigate the critique internally #2 nature and relevance revise sampling plan: of “global as needed feed back tointerviews and small mindset" participants group discussions with international categorize perceptions/ analyze data, observations, experiences/observations of “global managers, participant discussions mindset”+ execs, scholars n=200 -Obj. #2 validate construct, differentiate and focused group discussions define “global mindset” #3 revise to state-of-art revise scholarly w/participants sampling plan: as needed perspective expert informant identity antecedents, consequences, conference collect additional data, Obj. #3 and applications contingencies n=44 #4 consolidate into validate construct, of “global mindset” sampling plan: emergent themes revise to state-of-art #5 practitioner interviews w/ generate items re: perspective sr. exec. experts reviseIntel/Psych/Soc capital n=17 as needed n-100 int’l MBA’s final ‘reality’ check, + psychometricians including emergent drill int’l leaders experiences/insights factors of GI Mindset re:invid/org gl mindset successes #6 #7 The Global Mindset revise Items to create pilot test: pilot test #2 assure Inventory Global Mindset Inventory int’l managers int’l MBA’s psychometric draft n/800 n-,207 soundness
  49. 49. Thunderbird Faculty, Students & Alumni
  50. 50. Why Global Mindset?• Individuals with a high stock of global mindset can navigate cross-cultural issues and understand the nuances of global business.• They understand the complexity associated with global integration, know how to manage global supply chain relationships, are aware of political and economic influences, and understand global competitors and customers.
  51. 51. Why Global Mindset? • A company’s stock of global mindset is the sum of individual employees’ stocks of global mindset. • Organizations that have a high stock of global mindset are able to compete more effectively in the global economy. • Global Mindset is multidimensional: it is the sum of Intellectual, Psychological and Social Capital. • Global Mindset can be developed!© Mary Teagarden, 2008
  52. 52. What Is Global Mindset®? A set of individual characteristics that help global leaders better influence individuals, groups, organizations and systems unlike his or her own.© Mary Teagarden, 2008
  53. 53. Three Components of Global Mindset® • INTELLECTUAL CAPITAL: Knowledge of global organization, industry, value networks and cultural complexities • PSYCHOLOGICAL CAPITAL: Passion, excitement, respect, flexibility and openness towards other cultures • SOCIAL CAPITAL: The ability to build sustainable trusting relationships with others from diverse parts of the world.© Mary Teagarden, 2008
  54. 54. Social Individuals who possess Global Capital the Corporations behavioral that are flexibility and discipline to Global successful Behavioral Repertoire act Leaders in their different Individuals global appropriately who are who have a marketsPsychological global Individuals effective in Capital mindset who are influencing capable of people What is perceiving, from the game? analyzing different What are Intellectual and socio- the rules? Capital decoding cultural How do the global systems we win? operating environment Individuals who can accurately identify effective managerial action in the global operating© Mary Teagarden, 2008 environment
  55. 55. Intellectual CapitalGlobal Business CosmopolitanSavvy Outlook Cognitive ComplexityKnowledge of global Knowledge of cultures in different parts of Ability to grasp complexindustry the world concepts quicklyKnowledge of global Knowledge of geography, Strong analytical andcompetitive business & history and important problem solving skillsmarketing strategies persons of several countriesKnowledge of how to Up-to-date knowledge oftransact business & manage Ability to understand important world events abstract ideas risk in other countriesKnowledge of supplier Knowledge of economic and Ability to take complex political issues, concerns, issues & explain the mainoptions in other parts hot topics, etc. of major points simply &of the world regions of the world understandably
  56. 56. Psychological CapitalPassion for Diversity Quest for Adventure Self-AssuranceInterest in exploring Interest in dealing withother parts of the world challenging situations EnergeticInterest in getting to knowpeople from other parts Willingness to take risks Self-confidentof the worldInterest in living in Willingness to test one’s Comfortable inanother country abilities uncomfortable situationsInterest in variety Interest in dealing with Witty in tough situations unpredictable situations
  57. 57. Social CapitalIntercultural Empathy Interpersonal Impact DiplomacyAbility to work well with Experience in negotiatingpeople from other parts Ease of starting a contracts in other cultures conversation with a strangerof the worldAbility to emotionally Strong networks withconnect to people from people from other cultures Ability to integrate diverseother cultures and with influential people perspectivesAbility to understandnon-verbal expression of Reputation as a leader Ability to listen to whatpeople from other cultures others have to sayAbility to engage peoplefrom other parts of the Credibility Willingness toworld to work together collaborate
  58. 58. Detailed Global Mindset Profile Example
  59. 59. What Our Data Says… Companies that ignore the global mindset do so at their own peril. The ones that most effectively develop this quality in their employees—particularly senior leaders—will have a distinctive advantage over their competitors. Schon Beechler & Dennis Baltzley Chief Learning Officer, July 2008
  60. 60. The Global Mindset Inventory• The Global Mindset Inventory is a scientific tool for assessing an individual or organization’s stock of global mindset.• It is available online and takes about 10 minutes to complete the self-assessment.• Leader’s receive a customized report that includes their own, their group/company, and general benchmark data.
  61. 61. The Global Mindset Inventory• The GMI is available in 3 versions: • Corporate; Non-Business; Student (graduate & undergraduate)• The GMI is available in 4 languages: • English; Chinese (Mandarin); Russian; Japanese• The GMI is available in 2 formats: • Self-assessment; 360° (up to eight assessors)• Over 15,000 individuals in many parts of the world have completed the GMI.
  62. 62. The Global Mindset Inventory• Individual, Group and Organizational Developmental programs can be assessed using GMI for evaluating progress and effectiveness. • Complements class content for courses like: Political Economy; Cross-Cultural Negotiation; International Communications; Global Management • Is available in Graduate (Masters) level assessment questionnaire
  63. 63. Business School Application• The GMI used in a pre and post test design – Is directed at business schools that have a focus on Global Business, International Business, International Management – Is an ideal way to measure students’ readiness to lead global organizations – Evaluates the academic progress of students in the area of Global Mindset and Global Leadership, with pre-post testing – May be used as a Learning Outcome Assessment (LOA) tool, to satisfy the requirements of the accrediting body, AACSB
  64. 64. Framework to Global Leadership Experience • Cultivate Exposure Global • Develop Leadership Global Mindset Education • Deepen Global Knowledge
  65. 65. Are MBAs Ready?MBAs that do not have a well-developed Global Mindsets are NOT ready to compete intoday’s globalized world where he or she must think globally and act locally.
  66. 66. Good to Great!
  67. 67. 73
  68. 68. • If you would like to take the assessment contact:; or• For more information, please go to our website: